I don't personally like their phones, but the industry needs competition. Oligopolies almost always end up sucking in the longer run. I hate to see the choices shrink.
I was a fun of Huawei phones but after 2017, the Trump administration in its maniacal quest to cripple Chinese tech industry chased Huawei off the US market.
I suspect the Chinese gov't subsidized Huawei phones to gain market share, and perhaps snooping access. Thus, their price and features were unsustainable.
You are close and still far. It's their currency devaluation, though I wouldn't be surprised if there are some subsidizes.
The fact is when your engineering, your manufacturing, and everything else is in China where the rmb is 7 to 1 usd, then everything is cheaper. The living wage in Shanghai is maybe like 20k which is like 3k usd. So one of the most expensive cities in China and you can live as comfortably as the code monkey at Amazon, on a lower converted wage. Likewise those working in manufacturing aren't making such a comfortable wage and often live in conditions we would find completely unsuitable (akin to trailer parks).
When all parts of your business are cheaper, then your product is cheaper. Subsidies have also been sustained by China in a number of sectors for prolonged periods. If I recall right, it's trivial for most any small business to get free shipping to the US. This is to stimulate Chinese exports and a significant amount of Amazon is probably furfilled by those utilizing these subsidies. They have lasted for years.
So the more complex issue is currency devaluation which it's going to be a real shit show if China ever let's it's currency balance. Some are suggesting it could more than double for a 3 to 1 on the dollar. That means every Chinese part now doubles and inflation in America would likely balloon faster than any historic period.
Interestingly enough currency devaluation helps westerners enjoy cheap goods in virtually all sectors with the largest downside being a black of fiscal world freedom for the Chinese... So America keeps its love of cheap shit and China keeps its tradition of cultural isolation. Kind of a win win...
but we need competition (Score:3)
I don't personally like their phones, but the industry needs competition. Oligopolies almost always end up sucking in the longer run. I hate to see the choices shrink.
Re: (Score:2)
I was a fun of Huawei phones but after 2017, the Trump administration in its maniacal quest to cripple Chinese tech industry chased Huawei off the US market.
Re: (Score:1)
I suspect the Chinese gov't subsidized Huawei phones to gain market share, and perhaps snooping access. Thus, their price and features were unsustainable.
Re: but we need competition (Score:2)
You are close and still far. It's their currency devaluation, though I wouldn't be surprised if there are some subsidizes.
The fact is when your engineering, your manufacturing, and everything else is in China where the rmb is 7 to 1 usd, then everything is cheaper. The living wage in Shanghai is maybe like 20k which is like 3k usd. So one of the most expensive cities in China and you can live as comfortably as the code monkey at Amazon, on a lower converted wage. Likewise those working in manufacturing aren't making such a comfortable wage and often live in conditions we would find completely unsuitable (akin to trailer parks).
When all parts of your business are cheaper, then your product is cheaper. Subsidies have also been sustained by China in a number of sectors for prolonged periods. If I recall right, it's trivial for most any small business to get free shipping to the US. This is to stimulate Chinese exports and a significant amount of Amazon is probably furfilled by those utilizing these subsidies. They have lasted for years.
So the more complex issue is currency devaluation which it's going to be a real shit show if China ever let's it's currency balance. Some are suggesting it could more than double for a 3 to 1 on the dollar. That means every Chinese part now doubles and inflation in America would likely balloon faster than any historic period.
Interestingly enough currency devaluation helps westerners enjoy cheap goods in virtually all sectors with the largest downside being a black of fiscal world freedom for the Chinese... So America keeps its love of cheap shit and China keeps its tradition of cultural isolation. Kind of a win win...